There are 4 types of marketing techniques, which are Growth Strategies, Survival Strategies, and Branding & Relationship Marketing these techniques are used by most business. Growth Strategies
These are strategies that are aimed towards the expanding the business nationally or internationally by either expanding sales or increasing the market shares. Igor Ansoff has developed four types of strategies which are called market penetration, product development, market development and diversification. Market penetration happens when a business enters an individual market which current products and services already exist. Product development is basically the creation of products with new or diverse characteristics that give advantages to the customer. Also, product development may contain the changing of a product and/or how it’s seen. Market Development is technically the Expansion of the whole market for a product of business. This can be done by putting in new segments of the market and turning non users into normal users. Lastly, Market diversification is a strategy that looks into new markets. It mainly involves looking at a new market and creating a product or service so that it meets the needs and objectives of that market. Tesco use the four growth strategies. They use market penetration as they are always selling the same products and services their competitors sell but for a cheaper price. This allows Tesco to get their rivals competitors and a piece of their market share. Tesco also use market development since they have expanded their market by not only selling food items but offering mobile phone services. Tesco use product development. This may be because; Tesco normally produces their own brand of food items they sell. For example Tesco sells Branded and non- branded items. This gives the customer a variety to choose from and pick an item they are happy with and also for a reasonable price. Additional Tesco use market diversification since the sell items other that just food and drink For example Tesco sells mortgages and because of that has expanded into a new part of industry which involve other businesses and because of this Tesco have made more profit and increased their market share. South Thames is an organisation in the public sector. They have limited resources which are targeted at enabling students to receive good education. South Thames’s objective is to bring in students to match their resources for example equipment such as computers and classrooms etc. South Thames’s growth strategy is aimed at product development and market development. This is so that new students can be attracted to the college, mainly from the immediate catchment area and also outside it. They use market diversification. This is because they have created courses that cater to all types of people Both South Thames and Tesco use Growth Strategies to bring in more customers/students. However, Tesco uses market development to expand both locally and nationally and attract customers from competitors. They also use the penetration strategy to raise awareness of their existence both locally and nationally. Tesco uses more strategies because they are a much bigger company and offer a lot more than South Thames. Survival Strategies
Survival Strategies are used when a business has to develop to survive. These strategies are selling assets, Downsizing, Closing unprofitable operations, discounting less profitable lines & Making some employees redundant. To survive and remain in the market, Tesco uses these survival strategies. Tesco frequently make employees redundant. When this happens, they are offered an amount of money to leave with. With making employees redundant, it allows Tesco to save some money since they are decreasing their expenditure by bringing down the number of employees. Tesco also close operations to be not making any profit. An example can be when they choose to no longer offer the ‘Buy one...
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